All the tested banks plan to implement the recommendations by the end of 2017, thereby improving their control systems and provision of services. The heads of all the banks will allocate the required resources and will personally monitor the qualitative and punctual expenditure of such funds.
As of November of this year, 12 Latvian banks which are focussed on serving foreign clients had completed independent testing performed by US consultants using a common methodology. The independent testing evaluated the compliance of internal control systems with US standards for the prevention of the legalisation of illegally-obtained funds and financing terrorism, and recommendations have been prepared for further improvement.
Latvia’s banks comply with EU and Latvian operational standards. Therefore, compliance with US requirements is additional affirmation that Latvia’s banks wish to work within the strictest best practice standards, thereby exceeding the requirements set by EU and Latvian regulatory acts. Fulfilment of these quality standards also strengthens the reputation of Latvia’s banking sector and cooperation with foreign correspondent banks, moreover the testing process provided valuable experience and increased the practical knowledge of bank employees.
Preventing the legalisation of illegally obtained funds is an increasingly important everyday task for Latvia’s banks, which are devoting and will continue to devote all necessary effort and resources to performing this duty in accordance with international best practice and regulations.